Archive for the ‘Social issues’ Category

Taxes & the Domain Man: Get a Certified Public Accountant by your side

Posted by Acro in Business, Domains, Social issues on April 14th, 2008

One of the best decisions I ever made, was to entrust my tax processing to a professional. No, I am not talking about those colorful individuals from H&R Block. Surely, if you’re in a hurry, as an individual with uncomplicated financial status and in no need of real savings, you can go with these guys - or even buy one of the several commercial software solutions and just do it yourself.

On the other hand, if you’re looking for real attention about tax & business-related issues throughout the year, it’s worth locating and establishing a long-lasting relationship with a CPA - a Certified Public Accountant. Preferably, one that is aware of all new laws regarding the handling of “virtual” or intangible property, such as domains.

The first few times I did my taxes by myself. Back then I was married filing jointly, with kids, a house and a full time job. Over the course of several years, I am quite certain that I lost several thousand dollars due to being unaware of minimum deductions that apply by default: without a need for any real receipts. Did you know, for example that your car - once used to conduct business - has a depreciating value applied each year, including gas mileage? I didn’t know and neither did the software I used to do my taxes, after I gave up on the standard 1040 form done by “hand”. At one point, I missed out on $1,000 of deductions which I only discovered by accident a few months later; I was smart enough to apply for an amendment and I can only thank Google for that.

A CPA literally takes the burden of tax processing off your shoulders. Preferably, they run an office within close proximity, they have an active web site that you can manage your documents at and they offer support and consultations with you on a per request basis. Most important, they don’t charge for their services other than the annual processing fee.

Just tonight, I read on CNN that “tax season became a little more taxing this year, with the average person spending more than a day and more than $200 collecting, calculating and compiling those numbers for the tax man, according to a report based on Internal Revenue Service figures.

Two hundred bucks is a lot of money to bear the burden of responsibility and the task of doing everything right, all by myself!

The first time I used my current CPA was a little over 3 years ago. At that time, I was recently divorced, had sold my home and moved to another job; all while using Turbo Tax, which had taken me through all the loops and automated whistles it offers. At the final page I was looking at a grim $1,275 of tax payable to the IRS. Not too thrilled, if you asked me.

My girlfriend of that time suggested that I should use the very same CPA her parents used for years for their taxes. Now, I take advice from women very seriously, especially the ones with pretty blue eyes. So - reluctantly - I contacted their office and provided all the information needed, hoping that they’d do a better job than Turbo Tax. That year, I had a return of $850 after my fees to the CPA were paid. How’s that compared to a potential loss of $1,275 to the Man?

Of course, one still needs to be on top of things and save receipts, document transactions and register purchases and sales - along with “bugging” the usual suspects, the parking companies for the 1099 forms each year and all other sources of income. I must say that both Parked.com and Sedo.com are religious in their sending of the forms and that gives me plenty of time to gather all the information and submit it to my CPA. Thanks guys, at least all the money you make off my traffic goes to good use.

A Certified Public Accountant can be located in your local Yellow Pages, or - preferably - can be referred to by other friends and relatives in your area. It’s an investment well worth the cost (in the $200 to $350 region per year). Did I mention the CPA’s tax processing charge is a business deduction as well?

This year’s April 15th tax deadline is already here; get a CPA for your taxes and file for a 6 month extension with the IRS. You won’t regret it.

A Penny Saved is a Penny Earned

Posted by Acro in Domains, Social issues on March 28th, 2008

Every year, at Christmas, I take a large plastic water-bottle full of pennies to the Salvation Army.

It contains every penny that passed through my hands that year, which I have little use for at that time. Perhaps you’d be surprised to hear that $40 to $60 can fit in a one-gallon bottle. Little by little, every penny saved adds up to this gift - and that’s the method behind saving money for a later day.

On a given day, thousands of domains are registered around the world. The Registry keeps a large part of it for its functions, the rest is charged by the Registrar and perhaps the reseller that might be handling each domain. Imagine, if one penny went towards a specific cause - every single time a domain was registered - that’d be a really painless method of assuring everyone is contributing to that cause.

Global warming prevention? Cancer research? Waterworks in Africa? One penny per registration would amount to millions of dollars in donations, day after day after day.

Let’s make it happen. We can afford to donate that penny, the same way that we toss it down the plastic bottle thinking it will never amount to anything.

The Dark Face of Nazism: SS.com

Posted by Acro in Domains, Social issues on March 17th, 2008

ss-small.gifA few years ago, I bought a “KKK” domain that was being sold at DNForum.com and gave it to an anti-hatred organization. The cost didn’t matter; at stake was a URL with the potential of being misappropriated.

A decade ago, the NAACP managed to get hold of the domain name Nigger.com to prevent it from falling into the hands of hate groups that promote racism and harassment against African-Americans. This was a preemptive move that is to be applauded.

Although two-letter domains are an extreme rarity, one would feel that the double-consonant “SS.com” would be a carefully-guarded commodity, never to be placed in the hands of a buyer with Nazi or supremacist affiliations. And yet, it appears that the unfortunate happened. As seen at this press release by Australia-based J.C. Geaney, the domain SS.com has been apparently bought for the price of $1.25 million dollars.

Now, the greenback has been weak for the past year, but the price still is exorbitant. The press release by Mr. Geaney, a self-described “energetic, vibrant and charismatic Internet entrepreneur“, bears the colors and the insignia of the most fearsome special elite force of the nazi Germany before and during World War II: the SS or Schutzstaffel.

jeffgeaney.jpgThousands of people died in the hands of the oppressor forces, as did millions of others by the German invaders, in the course of war and at concentration camps. Today, Germany is extremely sensitive towards its past and has in place a number of measures that protect the legacy and the loss of the millions of people affected by Nazi Germany. In particular, it is a crime in Germany to promote nazism, nazi insignia are not allowed to be traded and denial of the Holocaust is a crime punishable by jail time.

We are witnessing a crime against humanity and the domain industry, as it’s evident by the imagery displayed at Geaney.com that the buyer condones Nazi symbols and apparently its ideology. It’s truly a disgraceful moment for the domain industry; the seller should have been aware of the special meaning of the two letters and should have done due diligence about the domain’s buyer.

Having lost my two grandfathers in World War II in Greece - one in combat and the other as an executed civilian - I believe that my anger is more than justified. The crimes against humanity that were committed by the SS and nazi Germany should be remembered as such and should never be allowed the chance of glorification by well-off individuals who buy the present, wanting to distort the past and attempting to destroy the future.

Gender-bending on the Internet: The Ballad of Stephanie & Bobby

Posted by Acro in Business, Domains, Social issues on March 6th, 2008

mask.jpgStephanie was in distress.

The loss of her parents in an fiery car accident left her an orphan at a young age. She was raised by her paternal grandfather, whose chronic ailments brought on many bills she was struggling to assist with. At the young age of 20, she had already become a mother and a wife, unhappily married to her military husband who was on his way to his 3rd tour of duty in Iraq. She was glad he was gone, because when her husband stayed at home he was abusive to her and the kids, forcing her to participate in acts of swinging and had, in her own words, “messed her mind up so much“.

As a stay-at-home mother of two, she cared for her little ones by undertaking online jobs: quick and dirty web design projects, programming of small portals, database creation and reselling domains of questionable value and of adult nature. Her friends of the same age went out partying, studied at college and held steady jobs. She was in a tight place, battling life’s unfortunate surprises, doing the best she could - when disaster hit again. Her oldest son, a beautiful boy with curly hair and big brown eyes, got infected with staph - and after developing high fever, he quietly passed away - on the last day of winter. He would have been 3 years old a few weeks later.

Stephanie was devastated. She had to arrange for her son’s funeral, pay the bills and care for her other child, while her husband was stationed thousands of miles away, battling insurgents in Baghdad. Her grandfather was bed-ridden, his mobility lost after suffering several strokes. She had nowhere to turn to and time was running short.

Nowhere - except for her online group of associates, forum participants and other potential buyers of her assets and services. It was 4am when Stephanie posted online how her little child had passed away and coyly asked for support for his loss. She uploaded a picture of the little child, a smiling little angel who could not possibly foresee his untimely demise when the photo was being taken.

The response was overwhelming. From behind keyboards and screens located all over the world, out came messages of support and soothing words of admiration for her courage. Some people offered to send flowers, others pledged money in a fund that’d be created for the surviving child. Others sent virtual *hugs* and electronic postcards, feeling deeply touched by her loss.

Stephanie was crying tears of joy. The funeral would take place two days later, so she had to get some money fast. She listed 300 domains for sale - about a tenth of her portfolio - her online signature tagging each of her posts as a reminder of her family’s tragedy. The sales thread received hundreds of visitors in the first few hours and Stephanie was almost certain now that God had not abandoned her.

She logged out, turned the computer off and went to wash up in the bathroom. Her big, six-foot tall frame and burly physique was staring at her from across the mirror. She straightened her thick black mustache, well-groomed for the past 10 years to compensate for the loss of her cranial hair, and while standing up she took a much-needed piss.

Bobby flushed the toilet and could not hold back a belch of relief.

He adjusted his pants and checked out his teeth in the mirror. At the age of 53, he had to be careful with his physical condition; he was not a young pup any more. Having spent several years of his youth in prison for fraud, grand larceny and indecent exposure, he had to be careful when talking about himself. As a convicted felon, he knew that he faced criminal charges if he stole the identity of another person to conduct his business, so he, like another Norman Bates at the “Psycho” hotel, had invented a grand-daughter; the playful, sassy and disaster-prone Stephanie whose problems seemed to increasingly step out of the darkest pages of “Les Miserables“.

Back at the online forum, the sales thread was still going strong the next morning. Bobby smiled, looked outside the window and sat down to enjoy a hearty breakfast. Life was finally good.

——————

This story is based on actual events. The Internet offers the opportunity to unscrupulous individuals to devise and assume new identities, forging a lifetime of accomplishments and even change their own gender in order to suit their goals. One has to be particularly careful when conducting interpersonal or business transactions with people that inexplicably flaunt their gender or ailments and who cannot provide verifiable information about themselves. To gain one’s trust is easy, especially when people view such pleas of despair with a nature of goodwill. Regardless of financial gains, faking one’s identity can be a devastating event that affects the impersonator, their immediate circle of friends and family - while ruining the faith and trust of the community he or she reaches out to. And it’s also punishable by law.

Protecting your virtual assets

Posted by Acro in Business, Domains, Social issues on March 1st, 2008

thief.jpgRemember that high school kid that used to break into everyone’s lockers to steal your stuff?

Guess what, he’s now an adult and he still steals - only this time, it’s your virtual assets he’s after: your domains, your emails, access to your bank and credit card accounts. This kid simply changed the size of the game but the rules remain the same: he’s still a thief and you’re still the potential victim.

Welcome to the wonderful world of intangible property theft.

As I am typing this, there is a chance that a keystroke-recording program is storing my text, beams it out to an online location to be dissected later by unscrupulous thieves. When I hit submit to my e-mail, it can be copying its contents to someone else. While I am checking my bank account balance on my laptop from the living room via wifi, some person might be getting a nice view of it while web surfing on my dollar.

There are several rules that you must observe, to avoid such trouble; each and every one of them will make such an unfortunate situation less probable. I’ve compiled a list of rules, and the list grows larger by the day; the more we rely on technology, the faster we become a target.

  • Install an anti-virus, firewall and anti-scumware application. There are lots on the market, some are free and some have extensive features that make the purchase of the full version worthy. If you run a business, such an expense is a write-off as well.
  • Never use a wireless connection for logging onto your bank account. If you must, enable secure connections with long keys and disable wifi at your router when not in use. Absolutely do not use an Internet cafe for that purpose.
  • Passwords are there for a reason: to provide privacy and access only to you. Do not use the same password across different accounts and forums. If it gets compromised, your entire online social activity will get compromised also. Make passwords hard to guess: use upper, lower case, numbers and symbols. Always use the maximum length allowed. For authorization questions stored alongside passwords, such as “Where are you located?” never answer the obvious but always give a surreal, unrelated answer e.g. “popsicles”. Never store your unencrypted passwords on electronic media, such as your PC; write them down on paper instead.
  • Communication is essential. There are several instant message programs, such as Yahoo, MSN, AIM, ICQ etc. They offer convenience and they are quite often compromised by off the shelf tools that can scan your computer for vulnerabilities, often taking control of it. As a rule of thumb, avoid using them altogether for business; or at least, avoid talking to strangers or people you cannot trust 100%.
  • Your domain Registrar offers the default tools of locking down domains, utilizing email alerts and other such precautionary measures to avoid losing domains. Lock your domains and consider registering the most valuable ones for several years in advance. There is nothing worse than an expired domain you lost due to negligence of your own.
  • Never fall for the social engineering attempts either. When you get a call from your bank or the web host or someone who claims to be of a certain authority, do not provide any information. Ask who they are and tell them you will call back. If they provide you with a phone number, make sure it’s the official number of the institution that is listed at their web site. Never reveal your social security number or your bank account number.
  • Online forums that offer the ability to trade are a haven for scammers to proliferate. If they ask for money to be transfered via Western Union or eGold, avoid them like the plague. Paypal does not offer a comprehensive protection either. For large amounts of money in transactions with strangers, prefer escrow services, such as Escrow.com, Moniker’s escrow, or Sedo’s escrow - or seek payment to be made via bank wire. Always, research the background of the traders and avoid “comets” that appear out of nowhere. Remember: if a deal is too good to be true, it probably is just that!
  • Always shred documents such as old bills, bank offers, legal papers, credit card documents - never toss them intact or cut up in the trash. The easiest way for thieves to gain access to your information is by picking your trash apart. For the same reason, never leave your outgoing mail in the mailbox to be picked up. Don’t be lazy, drop it off directly at the post office facilities.
  • Lastly, if you attend a convention party, be careful about having too many drinks and start disclosing personal information to that beautiful person that came out of nowhere. Social engineering via sexual attraction has worked since the days of Adam, when Eve bit the apple and gave it to Adam, with a kiss. God, being the keeper of the Eden BBS was mighty angry and instantly banned them both. :)

Humor aside, your virtual assets control your tangible assets. You’re responsible for being careful and prudent about the ways that will keep them safe. This way, you can sleep at night, without having bad dreams about an empty account.

The fallacy of anonymity: Cowards on the Net

Posted by Acro in Business, Domains, Social issues on February 23rd, 2008

groucho_glasses_1.jpgI was in the second grade at school, when a 10 drachma coin dropped from the pocket of a girl that was chasing me in the playground.

Girls chased me ever since because I was sweet towards them - hence, an easy prey. I picked up the coin, laughed at how she failed to catch me and gave it back to her. She then told the teacher I stole it from her in the first place. I had to prove that I didn’t steal it, by finding witnesses; other boys and girls that engaged with me in the game of chasing.

A few days ago, upon my unveiling of the shady deals and multiple profiles of a DNForum member, he went ballistic on me, with the following quote:

I had to come back online just to say this… if it was yesterday or days before i would not of said it, but i dont care now. Acroplex your an arragent stuck up prick, your head is way to far up your own ASSS, if i could get a flight out to america now i would kick your sorry butt in to the 3rd world. you think your so high and mighty, but you will come tumbling down with the attitude you hold some day! and before anyone go’s and question my attitude releating to this post, pisss off because i have a right to say it due to the way Acroplex has been with me. Anyone know his domain names, gladly PM me. Would love to FCUK them up! TOSSER!!!

Now, I have heard worse threats in the past and I respond in the manner I know best: Bring it on. At 6ft 2″ and 200 lbs, I am not exactly the person you’d want to push around in real life. No, I don’t have steel claws or a mean, scarred face but I am well-trained to protect myself in real-life situations, if needed.

Enter one of the Internet’s elusive species: the Anonymous Coward.

Within days of that threat above, I discovered a post on a forum about scams, claiming that I defrauded them of $3,000 for web design services. He proceeded with posting my contact info from the WHOIS of my domain, Acroplex.com, and claiming he was not able to reach me and that I blocked him on MSN. The only other post made by the same person on that forum, re-iterated the loss of $3,000 for some unknown service - using the same laughable, full of typographical errors writing style of our friend above.

My immediate reaction was to rebut this idiot’s claim with the full facts: using my full name and location I announced that I am the manager of Acroplex LLC, adding that not only such a claim was false but that I never talk business on MSN. The response of some other member of that forum with my full contact info was a lame attempt to unveil an alleged scam. Shame that vigilantism is the norm these days and no-one is innocent till proven guilty.

Such incredulous claims can put a dent in a person’s flawless reputation, both personal and business-related. The proliferation of such web sites, where anyone can put forth a claim of fraud, have shifted the burden of proving one’s innocence tremendously. Especially, when someone - like our Anonymous Coward - does not post any facts: no transaction details, no Paypal or credit card receipts, no verifiable information whatsoever.

The burden lies in the hands of the accused.

So our Anonymous Coward did not provide any supporting evidence. I pointed out my reputation scores at DNForum, and NamePros and willingly gave up personal contact information. Once a claim is out in the wild on the Internet, there is little one can do to have it removed. Of course, this does not mean that a case of libel or written defamation is beyond legal punishment. It simply requires time, effort and the involvement of a legal team.

The best approach with such false claims is to present the facts and let the impact take its course. There are various web sites out there that in extreme situations will spread “good karma” news in various venues, to improve the impact of a single bad claim. The bottom line is, that an Anonymous Coward can do a lot of harm temporarily; the recovery really depends on one’s resources and situations surrounding the incident. But one must always present the facts as a response.

The incident reminded me of a few things: one has to maintain a network of trustworthy, dependable and well-respected individuals that, given the chance of an assistance request, would offer their resources and advice. In the personal world, this is one’s immediate family. In the professional world, it’s the associates, partners, people one traded in the past or on a regular basis with; references and publicly-available feedback to transactions. It’s one’s wordkeeping that creates their reputation.

During the first day of discovering this false accusation incident, I had the pleasure of talking to Jarred Cohen (Mediahound / admin on DNForum) and George Kirikos, (GeorgeK) whose phone-calls offered me valuable information and the opportunity to break the voiceless/faceless medium of forum interaction. In the near future, I look forward to making even more such connections and meeting with more people of the wonderful world of domaining.

The Anonymous Coward is back inside his deep, dark cave of insanity.

The young entrepreneurs - a boon or a menace?

Posted by Acro in Business, Domains, Social issues on February 13th, 2008

teens.jpgAt the age of 15, I was the typical teenager: doing minimal effort at school, hanging out with friends, trying to impress girlfriends. There were no computers, no cellphones, no Internet to play video games - we hang out at the arcade, feeding coins to the game machines. We had time to go on trips on the weekends, go catch a movie or have parties. Healthy stuff.

Today’s teenagers are just too busy to claim that their leisure time is separate from work time or that there is a world of separation between them and adults. The Internet has created persistent expectations and rather firm stereotypes, bringing easy access to a myriad of goodies - directly to one’s bedroom. If you’re 15 and you have no cable access and a spanking new PC, you’re an outcast. Geeks are in and even chicks dig them these days.

The problem lies with young teenagers of both genders that attempt to overstep their age boundary and indulge into the commercial world of adulthood. One would argue that teenagers, being exposed to a variety of active environments these days, can actually mature faster and are therefore able to function more competitively in an effective fashion. While this might hold some water, studies show that the human brain between the ages of 12 to 20 undergoes an extreme fluctuation of its chemical secretion levels. Both boys and girls can act irrational, utterly emotional, unpredictable and with knee-jerk reactions that can sometimes be dangerous to themselves and to others.

Excluding children prodigies, which seem to evolve extremely well under the supervision of adults, young teenagers are simply too moody to successfully engage in the worldwide professional arena. There are certain qualities that are gained from life itself and cannot be taught in a family or at school. Such elements are crucial when engaging in business transactions with others, especially adults. Responsibility to one’s financial obligations, the weight and importance of one’s word, the ability to deliver timely what was promised, the ability to predict or rebound from the unexpected. These are qualities that one gathers in life, as we mature, from interaction with others through aging.

In today’s business environment, everyone with computer access and a few guidelines can attempt to form an online business. While exceptions are there, the overall rule appears to be that most teenagers are not to be trusted with managing tasks which involve a need for secrecy, the handling of large amounts of funds, delivering timely or in full. Teenagers simply don’t possess the experience and will to deliver all that, every single time, as they need exactly that - time - to stabilize their minds, to solidify their persona. And time is what separates young children from teenagers and young adults from mature individuals.

Should one avoid dealing with teenagers in an online or real life business transaction?

Whatever happened to the romantic entrepreneurial image of lemonade stands? The answer is: adults that engage in business transactions with teenagers must be aware of the consequences. In most western countries, a person under the age of 18 cannot - by civil law - be held responsible for their actions; their parents or guides are responsible for that. When an unscrupulous teenager fails to deliver and defrauds you in a domain sale, for example, good luck with trying to establish a case against them in the juvenile system of law; unless they ended up hacking the Pentagon.

I am all for supporting and rewarding the excitement of the youth as I have been one myself; if I had the opportunity to teach business ethics to a group of young people I would definitely attempt to encourage them to learn by listening more and acting less as adults and more like their own age. The best years of our lives predate adulthood and we cannot claim them back once we live them as adults.

Now, let me go back to playing my classic video game.